On October 1,2011,Sammy Sosa Company borrowed $80,000 cash on an 8-month,12 % note payable.Interest on the note will be paid when the principal is repaid.On October 1,2011,the company used the cash to buy $80,000 of equipment.The equipment has a 5-year estimated useful life and zero residual value.Use the space provided below to describe how these transactions will be reported on the company's financial statements for the year ended December 31,2011.
The statement of cash flows:
The income statement:
The balance sheet:

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The Answer of On October 1,2011,Sammy Sosa Company borrowed $80,000 cash on an 8-month,12 % note payable.Interest on the note will be paid when the principal is repaid.On October 1,2011,the company used the cash to buy $80,000 of equipment.The equipment has a 5-year estimated useful life and zero residual value.Use the space provided below to describe how these transactions will be reported on the company's financial statements for the year ended December 31,2011.
The statement of cash flows:
The income statement:
The balance sheet:

On October 1,2011,Sammy Sosa Company Borrowed $80,000 Cash on an 8-Month,12